The Dutch central bank, De Nederlandsche Bank (DNB), has relocated more than 78 metric tons of gold from its New York holdings, citing increasing geopolitical unrest as a primary reason for bolstering its crisis readiness. This move makes the Netherlands the second European country this year to reduce its gold reserves stored in the United States.
The DNB reallocated approximately 86 metric tons of gold previously held in the U.S. and Canada, with a significant portion now situated in London. According to the Financial Times, the central bank stated that this redistribution aims to enhance the tradeability of its gold reserves and reduce risk by spreading holdings across different jurisdictions. Olaf Sleijpen, governor of DNB, indicated that the relocation would make the precious metal more readily available during a crisis.
Earlier in the year, France also moved its gold reserves out of New York, eliminating its remaining holdings of 129 metric tons. The proceeds from that sale were used to acquire an equivalent amount of gold stored in Europe, now housed in Paris. The Banque de France, however, explicitly stated that its decision was not politically motivated.
The Netherlands holds a total of about 612 metric tons of gold. The recent reallocation saw its New York stockpile reduced by just over 78 metric tons, with an additional roughly 7 metric tons moved from its holdings in Ottawa. While the total amount shifted is substantial, only about 27 metric tons were physically transported from North America to Europe. The DNB sold much of its remaining North American holdings and purchased replacement gold in London, a major hub for physical bullion trading.
These relocations occur against a backdrop of heightened scrutiny from some European officials and politicians regarding the prudence of keeping national gold reserves in the U.S., particularly in light of unpredictable U.S. foreign policy. German politicians and taxpayer advocates have expressed concerns about holding substantial gold reserves in New York. Markus Ferber, a member of the European Parliament, previously warned that President Trump's unpredictability could pose a risk to foreign reserves held in the U.S.
German Green lawmaker Katharina Beck and European Parliament member Marie-Agnes Strack-Zimmermann have also voiced concerns, suggesting that Germany's reserves should not become a geopolitical pawn and that lack of unrestricted physical control over New York-held gold presents a growing risk. Michael Jäger, head of the European Taxpayers Association, has stated that German gold is "no longer safe" in the Federal Reserve's vaults.
Germany holds the largest gold reserves among the countries under discussion, with its Bundesbank possessing approximately 3,350 metric tons. Of this, 1,236 metric tons are stored in New York, representing about 37% of its total reserves. Germany previously conducted a significant repatriation program starting in 2013, moving 300 metric tons from New York to Frankfurt and another 374 metric tons from Paris.
However, Bundesbank President Joachim Nagel has expressed confidence in the security of Germany's New York holdings, stating that the gold is safely stored at the Federal Reserve and enjoys special legal protections. He argued that any questioning of this legal status would undermine confidence in financial markets and harm the U.S. The Federal Reserve Bank of New York acts as a custodian for foreign governments' bullion, and U.S. law generally protects these assets from seizure by private creditors.